Does Exchange Rate Matters to Educational Development in Nigeria?

The educational backwardness of Nigeria has been attributed to exchange rate depreciation. The objective of this study is to ascertain the nature and extent to which exchange rate is related to educational development in Nigeria from 1986 to 2022 using autoregressive distributed lag (ARDL) bounds test approach. The theoretical framework of the study is the dependency theory. Literacy rate is a proxy of educational development and the data of literacy rate was obtained from macrotrends.net. The data of exchange rate and the control variables were obtained from World Development Indicators. The domestic credit to private sector by banks, exchange rate, GDP per capita growth and lending interest rate had no relationship with educational development in Nigeria in both the short run and long run. Exchange rate does not matter to educational development in Nigeria. Exchange rate policy cannot be used to improve educational development in Nigeria. The dependency theory cannot explain educational development in Nigeria.